Robo Wealthsimple negotiating fresh funding round

Wealthsimple Inc., the Canadian online investment firm backed by Power Financial Corp., is near a deal to raise money from investors including Technology Crossover Ventures that will give it unicorn status.

The Toronto-based startup is in the final stages of closing a fresh round of more than C$100 million ($76 million) in funding led by Menlo Park, California-based TCV that values it at more than $1 billion, according to people with knowledge of the matter.

A spokeswoman for TCV did not have a comment and referred questions to Wealthsimple. A representative for Wealthsimple declined to comment.

Last year, the company last year raised capital from investors including Power Financial and Allianz X, the tech investment fund of Munich-based insurer and asset manager Allianz SE, to develop existing services and new product offerings, the company said in a statement at the time. Other backers include Toronto-based Bryker Capital Corp.

Wealthsimple, led by Chief Executive Michael Katchen, pitches itself as a low-fee way to invest through its robo-advisory services and commission-free stock trading. It has more than 175,000 users globally who sit in three tiers of membership based on deposit size, according to its website.

The company had previously raised about $190 million, valuing it at $743 million, PitchBook data show.

Wealthsimple’s emphasis on low-cost investment services has drawn comparisons with Robinhood Markets, which received a valuation of $11.7 billion last month when it raised money from investors including Andreessen Horowitz and Sequoia Capital. On Sept. 25, the Globe and Mail reported that Wealthsimple was seeking new funding from U.S. venture capital firms.

[More: Robo-adviser accounts surge during pandemic: Report]

The post Robo Wealthsimple negotiating fresh funding round appeared first on InvestmentNews.

You May Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *